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US Equities · Finance research note

SWKS — Skyworks Solutions

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 7.7%
Profit Margins 8.93%
Return on Equity 6.17%
Return on Assets 3.54%
Free Float 0.15B
Dividend Yield 4.18%
Short Int % Utilisation 29.58%

2.2 Growth

Metric Value
Revenue Growth -1.0%
Free Cash Flow 0.69B
EBITDA 11.37 (Ratio)
Enterprise Value 10.34B
EV/Revenue 2.56
EV/EBITDA 11.37

Revenue growth of -1.0% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 8.30%
Risk / Std Dev (Ann.)* 46.33%
1-Year Price Return* -2.65%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $69.62
52-Week Range $51.93 – $90.90
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $4.09B $4.18B
Net income Reported net income $477.10M $596.00M
Total assets Year-end reported balance $7.92B $8.28B
Shareholders’ equity Year-end reported balance $5.76B $6.34B
Net margin Net income ÷ revenue 11.67% 14.27%
Asset turnover Revenue ÷ total assets 0.5162x 0.5044x
Equity multiplier Total assets ÷ shareholders’ equity 1.3752x 1.3072x
ROE Net margin × asset turnover × equity multiplier 8.29% 9.41%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $4.09B
Prior annual revenue $4.18B
EBIT $553.80M
Tax rate 9.42%
NOPAT = EBIT × (1 − tax rate) $501.65M
Forecast start-growth basis -2.18%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $501.65M
Add: depreciation & amortisation $463.00M
Less: capital expenditure -$224.90M
Less/(add): working-capital cash-flow movement $193.20M
Current unlevered FCFF $932.95M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 -2.18% $490.71M $452.90M -$220.00M $188.99M $912.61M $862.91M
2 -1.01% $485.75M $448.33M -$275.41M $187.08M $845.75M $714.97M
3 0.16% $486.53M $449.04M -$333.58M $187.38M $789.37M $596.62M
4 1.33% $493.00M $455.02M -$396.52M $189.87M $741.37M $500.98M
5 2.50% $505.32M $466.39M -$466.39M $194.62M $699.94M $422.88M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.51
Cost of equity 13.02%
Pre-tax cost of debt 2.26%
WACC 11.85%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $7.67B
Implied terminal EV / EBITDA 7.49x
Terminal value as % of enterprise value 58.59%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $3.10B
Present value of terminal value $4.38B
Indicated enterprise value $7.48B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $7.48B
Less: gross interest-bearing debt $1.20B
Add: cash and equivalents $1.37B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $7.65B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 155,100,000.00
Share-count basis reported diluted weighted-average shares
Current market price $67.14
DCF indicative value per share $49.34
Indicative value vs. market price -26.51%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:49:46.713227 UTC; latest reported fiscal period: 2025-09-30 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -32.87% -34.17%
Adjusted R² 0.20 0.24
Annualised residual volatility 40.68% 39.44%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.62 (6.77) 1.64 (6.15)
Size (SMB) 0.17 (0.54) -0.28 (-0.83)
Value (HML) 0.72 (2.60) 0.16 (0.47)
Profitability (RMW) NM -0.55 (-1.94)
Investment (CMA) NM 1.70 (3.46)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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